New York CIty Council Member Ben Kallos

Gotham Gazette Report Shows Nation-Leading Extent of New York's Nonprofit Sector by Noah Berman

Report Shows Nation-Leading Extent of New York's Nonprofit Sector

Of the 6,440 new or renewal contracts the city comptroller’s office registered in FY2018, 80 percent were retroactive; with 40 percent more than 180 days retroactive. Some agencies, including the Department of Homeless Services and the Department of Education, submitted over 99 percent of their contracts late.

One study assessed the cost of lateness to New York City nonprofits at $774 million in 2018, up from $675 million in 2017. The financial strain of delayed payments to nonprofit workers can disproportionately affect women, who make up 85 percent of human service workers, and people of color, who make up 75 percent. The numbers are additionally troubling when combined with the state comptroller’s report showing just how large the city’s nonprofit sector is.

City Council Members Helen Rosenthal and Ben Kallos recently introduced legislation that would set time limits within which agencies would be required to complete each step of the procurement process, meant to expedite the process by which the city pays out its nonprofit contracts.

Comptroller Stringer has suggested that agencies with an oversight role in New York City’s contract review process “should be assigned a strict timeframe to complete their work, similar to the Comptroller’s 30-day time limit for contract registration.” Stringer encouraged the creation of “a public-facing tracking system that allows vendors to monitor the progress of the contract through each stage of the review process.”

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